DLF - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.8
| Stock Code | DLF | Market Cap | 1,34,367 Cr. | Current Price | 542 ₹ | High / Low | 888 ₹ |
| Stock P/E | 49.2 | Book Value | 117 ₹ | Dividend Yield | 1.11 % | ROCE | 8.34 % |
| ROE | 6.30 % | Face Value | 2.00 ₹ | DMA 50 | 617 ₹ | DMA 200 | 696 ₹ |
| Chg in FII Hold | -0.64 % | Chg in DII Hold | 0.57 % | PAT Qtr | 326 Cr. | PAT Prev Qtr | 818 Cr. |
| RSI | 35.1 | MACD | -24.2 | Volume | 36,66,922 | Avg Vol 1Wk | 52,90,712 |
| Low price | 525 ₹ | High price | 888 ₹ | PEG Ratio | 7.34 | Debt to equity | 0.05 |
| 52w Index | 4.86 % | Qtr Profit Var | 304 % | EPS | 11.7 ₹ | Industry PE | 25.5 |
📊 DLF shows weak fundamentals with low ROCE (8.34%) and ROE (6.30%), while trading at a high P/E (49.2) compared to industry average (25.5). Technical indicators are bearish (RSI 35.1, MACD -24.2, price below 50 & 200 DMA). Despite strong past momentum, current weakness makes it a risky swing trade candidate.
💡 Optimal Entry Price: Around ₹530–545, near support levels.
📈 Exit Strategy (if already holding): Consider exiting near ₹610–630 if recovery occurs, or cut losses if price falls below ₹525 decisively.
Positive
- Large market cap (₹1,34,367 Cr.) ensures liquidity and credibility.
- Dividend yield of 1.11% provides steady income.
- Debt-to-equity ratio of 0.05 indicates low leverage.
- Quarterly profit variation (+304%) shows strong sequential improvement.
Limitation
- ROCE (8.34%) and ROE (6.30%) are weak compared to peers.
- High P/E (49.2) relative to industry average (25.5) suggests overvaluation.
- PEG ratio of 7.34 indicates expensive valuation relative to growth.
- Price trading below both 50 DMA (617) and 200 DMA (696), confirming bearish trend.
Company Negative News
- FII holdings decreased (-0.64%), showing reduced foreign investor confidence.
- PAT dropped sharply from ₹818 Cr. to ₹326 Cr., indicating earnings pressure.
Company Positive News
- DII holdings increased (+0.57%), reflecting domestic institutional support.
- Quarterly profit variation (+304%) shows resilience despite lower absolute PAT.
Industry
- Industry P/E at 25.5 is much lower than DLF’s, suggesting the stock trades at a steep premium.
- Real estate sector remains cyclical, influenced by interest rates, demand cycles, and government policies.
Conclusion
⚖️ DLF is fundamentally weak and technically bearish, with high valuation and declining profits. Swing traders may cautiously enter near support (~₹530–545) and exit near resistance (~₹610–630). Conservative traders should avoid until technical indicators improve and earnings stabilize.